IMO, following the share placement in June and subsequent share dilution there has definitely been a marked decrease in investor sentiment, which I think is understandable. However, given the well structured plan for the newly raised capital, namely and most importantly the purchase of the 5G spectrum and 5G network conversion as well as the strong potential of the NVIDIA GeForce NOW cloud gaming service, I still feel confident in the long term potential of this stock.
My confidence in Pentanet primarily stems from the Pentanet Fixed Wireless offering. Considering the rather poor performance of the new National Broadband Network (NBN) rollout and rise of 4K streaming, smart homes, WFH practises, video conferencing, etc, the demand and need for high-speed internet will only continue to increase and these demands cannot adequately be met by NBN. Let me tell you why... In Australia particularly, we are faced with a strong geographical and physical boundary when considering network and telecommunications, mostly due to the sheer size of this country. I know that in certain countries, they are able to upgrade their internet cables 2-3 times a decade but this simply isn't viable in Australia from a logistical and financial perspective. Therefore, I believe that technologies such as the Fixed Wireless - which essentially places a small dish on a roof and creates a wireless link to the telecommunications tower - are the future for Internet, especially in Australia. I believe that the main concern here will be competitor companies (i.e. Starlink) but here in Perth at least, customer support and sentiment for Pentanet is positive and rather loyal.
I got in on this share @ 61.5c and only now am starting to be in the red. If the price continues to drop I will look to top up and lower my average price. Definitely a long term holding for myself.
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